Faraz Saeed

LAHORE: Pakistan received $12.9 billion in workers&rsquo; remittances during the first four months of the current fiscal year (4MFY26), marking a 9.3% increase from $11.9 billion in the same period last year, according to data released by the State Bank of Pakistan (SBP). In October alone, remittances amounted to $3.4 billion, up 12% year-on-year. On a month-on-month basis, inflows rose 7% from $3.2 billion in September, representing one of the strongest monthly inflows in recent months. The SBP said the rise reflected the government&rsquo;s ongoing push to encourage formal channels and expand digital transfer systems, while reducing reliance on informal money transfer networks. Saudi Arabia remained the single largest source of inflows, contributing $821 million in October, an increase of 9% from September and 7% higher than the same month last year. Remittances from the United Arab Emirates totaled $698 million, up 12% year-on-year. Inflows from the United Kingdom reached $488 million, rising 13% annually and 7% from the previous month. The United States sent $290 million, showing an 8% month-on-month increase, though 4% lower than a year earlier. Meanwhile, receipts from European Union countries surged 27% year-on-year to $457 million. Pakistan recorded $38.3 billion in total remittances during FY25, the highest annual inflow on record. Prime Minister Shehbaz Sharif welcomed the increase, calling overseas Pakistanis &ldquo;a backbone of the economy.&rdquo; &ldquo;Overseas Pakistanis are our invaluable assets, serving the nation by sending their hard-earned money,&rdquo; he said. &ldquo;The consistent rise in remittances reflects the trust expatriates have in our economic direction.&rdquo; Analysts said higher remittances are providing much-needed support to Pakistan&rsquo;s external account, especially as export growth remains subdued. Waqas Ghani, Head of Research at JS Global, said remittances had &ldquo;clocked in at one of the strongest levels in recent months,&rdquo; adding that cumulative inflows of $12.96 billion in 4MFY26 indicated &ldquo;a decent 9 percent year-on-year growth.&rdquo; However, he cautioned that sustaining the trend will depend on &ldquo;consistent policy support, expansion of digital channels, and diversification of overseas labor markets.&rdquo; The Pakistan Remittance Initiative (PRI), launched in 2009 to encourage the use of formal banking channels, continues to play a central role. The number of participating financial institutions has grown from around 25 in 2009 to more than 50 by 2024, improving speed and security for overseas senders. Economists say remittances, now Pakistan&rsquo;s largest source of foreign exchange, will remain critical for economic stability as the country continues to face external financing pressures and persistent inflation.

Economy

With Saudi Arabia among largest contributors, Pakistan received $12.9bn in remittances during 4MFY26, rising 9.3%, bolstering external finances as authorities promote formal transfer channels.

Pakistan remittances rise to $12.9 billion in early FY26: central bank

Web Desk

ISLAMABAD: Pakistan received $3.1 billion in remittances from overseas workers in August 2025, according to data released by the State Bank of Pakistan (SBP). The figure reflects a 6.6% increase compared to the same month last year, when remittances stood at $2.9 billion. Remittance inflows in the first two months of FY26 rose by 7% despite incentives cuts. On a monthly basis, however, the inflows were 2% lower than the $3.2 billion recorded in July 2025. Breakdown of remittance inflowsAccording to the breakdown, Saudi Arabia remained the top source of remittances with $737 million sent in August. This marked an 11% decrease from July but a 3% increase from August 2024. Inflows from the United Arab Emirates rose 19% year-on-year to $643 million. Remittances from the United Kingdom stood at $463 million, showing a 3% increase month-on-month but a 2% decline compared to the previous year. The United States contributed $267 million, reflecting a 17% year-on-year decrease.

Pakistan’s August remittances hit $3.1B, with notable inflows from Saudi Arabia, UAE, UK, and USA

Pakistan’s remittances rise 6.6% to $3.1B in August

ISLAMABAD: Pakistan&rsquo;s remittance inflows surged by 27% to a historic $38.3 billion during the fiscal year 2024-25. The cost to handle these inflows through formal banking channels soared even faster, *Business Recorder* reported, citing official data.&nbsp;The country has witnessed a dramatic rise in remittances, which grew five times to $38.3 billion in 2025, up from $7.8 billion in 2009. Over the last 10 years, remittances have grown by 92%. In July 2025 alone, workers&rsquo; remittances rose 7.4% year-on-year, highlighting the continued reliance on overseas Pakistanis for foreign exchange earnings, which now exceed the country&rsquo;s export receipts.&nbsp;In FY24-25, remittances from Saudi Arabia, the UAE, the UK, and EU countries contributed significantly to the rise, positioning Pakistan as the world&rsquo;s fifth-largest recipient and the second-largest in South Asia.&nbsp;One of the primary reasons for the significant increase, according to the&nbsp;<a href="https://www.pakistantv.com/article/pakistans-central-bank-cuts-policy-rate-by-50bps-to-105-in-surprise-move" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">State Bank of Pakistan (SBP)</a>, is the introduction of attractive incentive payouts to banks and money transfer operators, aimed at reversing the previous decline in remittance volumes.&nbsp;Additional contributing factors include the reinstatement of the&nbsp;<a href="https://www.pakistantv.com/article/saudi-arabia-remains-top-destination-for-pakistani-workers-in-2025" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Saudi Arabia</a>&nbsp;remittance corridor and a significant 60% depreciation of the rupee against the Saudi riyal &mdash; the currency used to calculate government rebates.&nbsp;Even though remittances are up, the cost of handling this money through the government&rsquo;s system, Pakistan Remittance Initiative (PRI), has also gone up a lot, the SBP data shows. In 2025, the cost reached Rs 124.14 billion, compared to Rs 72.95 billion in 2024, marking a sharp increase of 70%.&nbsp;The sharp increase in handling costs has raised concerns within government circles, prompting the Economic Coordination Committee (ECC) to rationalize incentives offered under the Transfer to Cash Incentive Scheme (TTCIS).&nbsp;To manage the fiscal burden, the ECC has approved changes to TTCIS, including a flat incentive rate of 20 Saudi riyals per transaction &mdash; down from a variable 20&ndash;30 riyals &mdash; and a higher minimum transaction size of USD 200, up from USD 100.&nbsp;Since its inception in 2009, the PRI has expanded its network to over 50 domestic financial institutions and around 400 international partners, facilitating a nearly fivefold increase in remittance inflows over the period.

A dealer counts US dollars at a money exchange market in Karachi on March 2, 2023. (AFP/File)

Sharp rise in cost forces the Economic Coordination Committee to rationalize cash incentives offered to boost remittances

Articles tagged with "Pakistan's remittances"

Pakistan remittances rise to $12.9 billion in early FY26: central bank

Pakistan’s remittances rise 6.6% to $3.1B in August

Pakistan’s inflow handling cost surges 70% amid record remittances